For the just completed year, Hanna Company had net income of $66,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:     December 31   End of Year Beginning of Year Current assets:         Cash and cash equivalents $ 60,000 $ 76,000 Accounts receivable $ 166,000 $ 186,000 Inventory $ 433,000 $ 352,000 Prepaid expenses $ 12,500 $ 14,000 Current liabilities:         Accounts payable $ 364,000 $ 386,000 Accrued liabilities $ 8,500 $ 11,500 Income taxes payable $ 34,000 $ 28,000     The Accumulated Depreciation account had total credits of $52,000 during the year. Hanna Company did not record any gains or losses during the year.   Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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For the just completed year, Hanna Company had net income of $66,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:

 

 

December 31

  End of Year Beginning of Year
Current assets:        
Cash and cash equivalents $ 60,000 $ 76,000
Accounts receivable $ 166,000 $ 186,000
Inventory $ 433,000 $ 352,000
Prepaid expenses $ 12,500 $ 14,000
Current liabilities:        
Accounts payable $ 364,000 $ 386,000
Accrued liabilities $ 8,500 $ 11,500
Income taxes payable $ 34,000 $ 28,000
 

 

The Accumulated Depreciation account had total credits of $52,000 during the year. Hanna Company did not record any gains or losses during the year.

 

Required:

Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)

 

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